Share This Article:

Economic Definition of utility. Defined.

Offline Version: PDF

Term utility Definition: The satisfaction of wants and needs obtained from the use or consumption of goods and services. The terms utility and satisfaction are, for the most part, used interchangeably in economics. Two other somewhat technical economic terms frequently used to capture this notion are welfare and well-being. Whichever term is used, the underlying concept is the same: To what extent are unlimited wants and needs fulfilled using the goods and services produced from society's limited resources.

 

« utilitarianism | utility analysis »

Permalink: http://glossary.econguru.com/economic-term/utility

Alphabetical Reference to Over 2,000 Economic Terms